The website of the Revenue Administration published Corporate Tax Communiqué No. 9 (regarding clarifications to the Corporate Tax Law General Application Communiqué of 3 April 2007) on February 11, 2016. This measure has not yet been published in the Official Gazette. Under Article 10(i) of the Corporate Tax Law (CTL), 50% of the interest amount calculated on capital increases (in cash) in capital companies and on the part of the capital paid in cash in newly incorporated companies may be withheld from the corporate tax base. However, establishments operating in finance fields, banking and insurance sectors and public economic enterprises cannot make this deduction. Corporate Tax Communiqué No. 9 gives the following information:
- transactions and persons covered by article 10(i);
- application of the deduction;
- registration for capital increase;
- tax periods for deducting and carrying forward remaining notional interest;
- capital decrease;
- deduction rates; and
- limitation of the notional interest deduction.
